General Motors Brings ACDelco Back To India With Assurance Intl Partnership

Famous American automobile company General Motors (GM) has brought its global aftermarket brand ACDelco back to India. This time, it is doing so through a licensing partnership with Assurance International Limited.

Under this agreement, Assurance Intl will manufacture, market, and sell ACDelco products in India. The first products to launch will be automotive batteries and engine lubricants.

Instead of returning to car manufacturing, GM is focusing on selling spare parts and maintenance products for vehicles already on the road.

Why GM Chose The Spare Parts Market

GM stopped selling its Chevrolet passenger cars in India in 2017. After that, ACDelco operations in the country also ended in 2020.

Now the company is returning in a different way. Rather than building cars again, it is targeting the vehicle repair and maintenance market, which requires lower investment but still offers steady business opportunities.

India has more than 300 million vehicles on its roads today, and the overall automotive aftermarket industry is estimated to be worth over $12 billion every year. This makes the sector attractive for global brands looking to grow in India without setting up large car manufacturing plants.

Assurance Intl Will Handle Production In India

In this partnership, Assurance International Limited will manage the entire ACDelco business in India. It includes manufacturing, marketing, and distributing the products across the country.

Production will mainly take place at the company’s facilities in Hisar, Haryana. The existing plant there can blend and package lubricants with a capacity of around 100,000 litres per day. The company also plans to build a battery manufacturing unit with an investment of about ₹300 Cr., which could produce up to 25,000 batteries daily once fully operational.

Strong Distribution Network Across India

Assurance Intl’s existing distribution network is a big advantage for ACDelco in India. The company already works with about 260 distributors and 20,000–25,000 retailers across the country. Through this network, the products will reach spare parts shops, workshops, and vehicle service centres.

This wide reach could help the brand quickly become visible in many automotive markets across India.

Revenue Goals For The New Business

The companies expect the business in India to grow steadily over the next few years. Their annual revenue target is between ₹75 and ₹100 Cr., and they hope to achieve this within the next three to four years.

ACDelco products will be compatible with many different vehicle brands, not just GM vehicles. This allows the company to serve a larger section of India’s after-sales service market.

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What This Means Going Forward

For GM, bringing ACDelco back to India is a way to stay connected with one of the world’s largest automobile markets.

For Assurance Intl, the partnership offers the chance to manufacture and sell products under a globally recognised automotive brand.

As the number of vehicles in India continues to grow, the need for replacement parts and servicing is also increasing. As a result, the aftermarket is becoming a more important part of the automotive industry.

Sources:

ET

Forbes India

HT Auto